Station Casinos, Greenspuns settle dispute over Green Valley Ranch
Station Casinos and the Greenspun family on Wednesday settled a nearly five-month public feud over the operation of their jointly owned Green Valley Ranch Resort, vowing to bring the troubled Henderson casino back from the brink.
The dispute between two of Las Vegas' most prominent families boiled over into the public realm with a series of court filings in February that cast aspersions on both parties: the Greenspuns, who operate media, land development and gaming companies; and the Fertittas, founders of the Station Casinos brand.
In addition to Green Valley Ranch, the families jointly own Aliante Station in North Las Vegas and several smaller casinos in the Las Vegas and Henderson areas.
The action came the day before Station Casinos representatives, lenders and bondholders are scheduled to participate in two days of hearings at the U.S. Bankruptcy Court in Reno over several motions in the casino operator's Chapter 11 reorganization. The judge is expected to make rulings on portions of the company's proposed reorganization plan.
Green Valley Ranch and Aliante Station are not part of the Chapter 11 bankruptcy cases filed by Station Casinos and several affiliate companies.
However, during a hearing on May 5 in Reno, a Station Casinos attorney said Green Valley Ranch is saddled with about $850 million in debt while Aliante Station has a first lien debt of $350 million.
"Sitting here today, those properties are debt-impaired and the debt is worth nothing," said Station Casinos attorney Paul Aronzon of Los Angeles.
Station Casinos and the Greenspun Corp. released a joint statement, saying both sides agreed to withdraw their court claims and counterclaims and "work together through the reorganization process to attempt to successfully restructure the debt of Green Valley Ranch and Aliante Station."
Wednesday's filing of the voluntary withdrawal is subject to approvals by the U.S. Bankruptcy Court. Once completed, all claims between entities owned by affiliates of the Greenspun Corp. and Station Casinos will be resolved and all legal action between the parties dismissed.
"The Greenspun and Fertitta families have been friends for decades, and we have enjoyed a very successful partnership with Frank and Lorenzo Fertitta for over 15 years," Greenspun Corp. Chairman Brian Greenspun said in a statement. "We look forward to continuing both our friendship and business relationship with them far into the future."
Added Station Casinos Chairman Frank Fertitta III, "We are pleased that we have been able to resolve all the issues with the Greenspuns, and we look forward to continuing our relationship with them for many years to come."
Neither side commented beyond the statement.
The charges listed in the court filings involved allegations of mismanagement by Station Casinos, which operates the casinos for the joint venture. The Fertittas were accused of "poaching" high-end customers from Green Valley Ranch and taking them to Red Rock Resort, which is wholly owned by Station Casinos.
The Fertittas denied the allegations.
In a response, Station Casinos said the Greenspuns relied on an affidavit of former Green Valley Ranch general manager Timothy Wright, who was fired in November after "several documented and recorded instances of inappropriate conduct."
After the Station Casinos affiliate that operates Green Valley Ranch declared Chapter 11 bankruptcy in February, a Greenspun Corp. affiliate filed a motion in bankruptcy court alleging "wrongdoing" based on Wright's affidavit.
In March, Henderson police arrested Wright and charged him with domestic battery by strangulation, aiming or discharging a firearm at a human being, and discharging a firearm at or into a structure or occupied vehicle.
Neighbors called police and alleged that Wright had battered his live-in girlfriend at their home south of Sunridge Heights Parkway and east of Seven Hills Drive, according to the arrest report.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
